Herbalife Sharply Higher Off Dutch Auction Announcement And Chatter About Going Private

First of all, the company has announced a modified Dutch Auction for $600 million in common shares between $60.00 and $68.00/share. Investors who decide to tender will exit their shares at the final price set by the company.

Also, CNBC's Scott Wapner tweeted that the company has held talks with a "major" private equity firm and that due diligence was completed.

At this time, the stock is trading above the upper-end of the Dutch Auction range ($68.00), as $68.25 stands as the high for the session as of 10:50 a.m. EST. This signals that investors anticipate an adjusted upward movement of the Dutch Auction price or that Herbalife will be taken private at a higher level than the upper-end of the Dutch Auction range.